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2024 (1) TMI 1189 - AT - Income TaxAddition u/s 68 - accommodation entries receipts - onus to prove - notices u/s 133 (6) issued to the companies but assessee could not produce the Directors/Principal Officers of the said companies - information was received by AO from the Investigation Wing of the Department that the assessee is beneficiary of taking accommodation entries in the garb of share application money/share capital from entry providers - HELD THAT:- All the documentary evidences were duly provided to the AO. AO did not offer any examination of these documents and did not mention even a single adverse point in the financials of these companies. His whole exercise was based upon his claim that section 133 (6) notice was returned unserved. It was not at all the case that these companies were not having PAN or they were not filing income-tax returns. CIT (A) has mentioned that AO has issued summons u/s 131 of the Act to the Directors of the company but no such mention was there in the order of the AO. From the examination of the financials, balance sheet and bank statement, it is noted that transactions were through banking channel and these companies have sufficient financial reserves to provide the credits/ loans to the assessee company. Thus when all the details were provided and no adverse feature was noted therein, assessee has discharged the onus cast upon it. The authorities below have based these adverse orders only by making general observation and repeating that assessee did not produce the directors of these companies. Thus as assessee has discharged its onus, hence orders of authorities below are set aside. Since addition under section 68 of the Act has been directed to be deleted, the addition for commission does not survive and the same is also directed to be deleted - Decided in favour of assessee.
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